Taiwan Capitalization Weighted Stock Index

TWSE

TAIEX

This chart is pretty simple. It basically reminds investors that the Taiwanese stock market is highly positively correlated with US equities using the S&P 500 index as the primary proxy of US stocks. We can see that positive correlation with the correlation coefficient below. The Nikkei 225 is as well. However, TAIEX RSI is nearly flashing overbought and all three...

TAIEX enjoys a positive correlation coefficient with the Shanghai Composite which has strengthened consistently over the past few months. Then if we believe that a trade deal with the US is coming then the TAIEX will surely enjoy some gains as well even especially since TAIEX greatly outperforms Shanghai Composite and Shenzhen Component. However, TAIEX RSI is well...

While RSI and Bull/Bear sentiment have edged away from clear overbought signals, we are continuing to see exponential moving averages assert their authority in suggesting the uptrend will continue. This is the case for the 'ribbon' of EMAs excluding the five day EMA which price action has dropped below. In the short-term I am a bit bullish on Taiwanese equities...